Speaking Tuesday during her 14th annual State of the City address, Bay's longest-serving mayor described how the city was able to move forward despite having nearly $1 million less in general fund revenue. That was largely attributable to the state's decision to do away with the estate tax, Sutherland said.

To keep costs down, the mayor said, the city cut its general fund expenses by nearly $500,000. That included reducing the workforce by the equivalent of 14 full-time employees, Sutherland said.

The mayor also talked about the savings from outsourcing the city's building department last May to SAFEbuilt, a Colorado-based company. She said that was about $250,000 last year and should total $400,000 this year.

The building department issued 2,096 building permits with a total value of nearly $31 million. Fourteen were for dwellings that totaled nearly $12.4 million -- four more permits than the previous year, Sutherland said.

Among the upcoming projects in the mostly residential community, is St. Raphael's plan to build a new church and demolish the existing structure on Dover Center Road. The project will include a chapel and community room, making it about 8,500 square feet larger than the existing footprint, Sutherland said.

Sutherland said one of the reasons that Bay has been able to weather the economic downturn is because of the city employees and directors in her administration.

She also cited citizen involvement, noting the efforts of the city's Green Team that works on sustainability, waste management and other environmental issues. The mayor also talked about the Village Bicycle Cooperative's role in promoting biking.

Sutherland noted that Bay's police chief for 18 years, David Wright, retired last year and was replaced in November by Chief Mark Spaetzel. She said motor vehicle accidents decreased to 23 percent of the 10-year average last year and that calls for service and the number of serious crimes also dropped.

The mayor also talked about the efforts of Bay's 24 auxiliary officers, who donated more than 840 hours to the city and saved the city more than $15,000 in overtime.

She said the fire department responded to 1,333 calls for assistance and added that the EMS crews now are equipped with iPads so they can communicate directly with a hospital when bringing in a patient.

Sutherland said she and other West Shore mayors continue to discuss the possibility of a collaborating on regional fire services to save money and avoid duplication. She said Bay and neighboring communities already have agreed to each specialize in particular rescue services and to help each other in emergencies.

The mayor said that Scott Thomas, who became Bay's service director last year, has implemented a new work order system to better track repairs and residents' requests for service. She said he also is working on automated fuel systems that could save the money.

She also praised the directors of the community services and recreation departments, and noted that the city has been recognized by the state for its financial reporting.